We are on the cusp of something very big in the auto industry, but this time, such big news is arriving in small packages. This week’s huge interest in the downsized Ford Explorer and all-new and very small Mazda2 and Honda CR-Z illustrate consumers’ willingness to “think small” as long as the driving experience is not compromised...

For the full report and commentary, please visit: http://mediaroom.kbb.com/hot-car-report

(Please note: Past Hot Car Reports are available by clicking the ‘Archives: 2010’ link)

**Top News**

Ford resumes Fiesta shipments after fixing parts glitch

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100825/OEM01/308259953/1254

Ford fixes Fiesta part issue, resumes deliveries

http://www.detnews.com/article/20100825/AUTO01/8250456/1148/AUTO01/Ford-fixes-Fiesta-part-issue--resumes-deliveries

Ford halts Fiesta shipments

http://www.freep.com/article/20100826/BUSINESS01/8260419/1331/business01/Ford-halts-Fiesta-shipments

Ford Fiesta earns top safety award

http://money.cnn.com/2010/08/25/autos/ford_fiesta/index.htm

Ford Fiesta minicar earns IIHS Top Safety Pick status

http://content.usatoday.com/communities/driveon/post/2010/08/ford-fiesta-minicar-earns-iihs-top-safety-pick-status/1?loc=interstitialskip

Small is Safe: Ford Fiesta Earns 2010 Top Safety Pick

http://www.prnewswire.com/news-releases/small-is-safe-ford-fiesta-earns-2010-top-safety-pick-101491289.html

**KBB Commentary on Top News**

You Will Love It... If You Can Find It...

Ford is fighting a wonderful but bedeviling problem as it continues its Fiesta subcompact car roll-out. On one side, the company continues to sweep up accolades and this week the Fiesta was awarded a coveted IIHS "Top Safety Pick" status. This is a BIG deal for a SMALL car, as it helps confirm what kbb.com has been telling smart car shoppers: The new generation of subcompact cars is not the same as the "penalty boxes" of yore. Unanticipated levels of refinement, design and convenience meet expected great fuel efficiency and low entry prices in this re-energized class, and as confirmed with the new Fiesta, safety no longer needs to be a point of compromise.

However, as is much too often the case in the complex automotive manufacturing business, getting this hot little car into excited buyers’ hands has been a struggle. Between production delays and the impact of storms on shipping lanes, many early Fiesta buyers have been kept waiting. And, recent news that a pesky part fix and delay has been corrected and shipments can begin once again is key for this very important vehicle for Ford, as well as the coming CAFE regulated market in general.

Unconfirmed speculation is that the part in question was a seat control lever. This was of extra interest to us at kbb.com, as we also encountered a faulty seat lever when testing the Fiesta earlier this year. At that time, we were told that this was a known issue but would be addressed well before launch. If the speculation is true, then it seems the issue was not quite fixed before launch. However, we are happy to see Ford addressing part fix issues now so the Fiesta can continue to roll-out toward success.

- James Bell, executive market analyst, Kelley Blue Book’s kbb.com

**OEM/Vehicle News**

Fiat’s Marchionne says ties with U.S. dealerships have never been better

http://www.bloomberg.com/news/2010-08-26/fiat-s-marchionne-says-ties-with-u-s-dealerships-have-never-been-better.html

Chrysler’s speed merchant

http://money.cnn.com/2010/08/25/autos/sergio_marchionne_chrysler.fortune/index.htm

Ford Motor gained market share in August, Fields says

http://www.bloomberg.com/news/2010-08-25/ford-gained-u-s-market-share-in-august-fiesta-being-shipped-fields-says.html

The new GM looks abroad

http://money.cnn.com/2010/08/25/autos/gm_overseas_expansion.fortune/index.htm

BMW aims for small luxuries

http://www.detnews.com/article/20100826/AUTO01/8260357/1148/auto01/BMW-aims-for-small-luxuries